The Phase 2 of Persian Gulf Star Refinery in the city of Bandar Abbas in southern Hormozgan Province, which is hailed as the Middle East's largest processing facility for gas condensate, was officially launched by President Hassan Rouhani on Thursday.
Oil Minister Bijan Namdar Zanganeh, also present at the ceremony, said, "With the second phase becoming operational, the country has neared its goal of self-sufficiency in gasoline production," Shana reported.
The completion of the second phase raises its capacity by 120,000 barrels per day to 240,000 bpd, with the third phase expected to add another 120,000 bpd of capacity.
"Once in full swing, the star refinery will produce 36 ml/d of gasoline," he added.
The boost in output can effectively cut gasoline imports and turn Iran into an exporter of the product.
Iran’s Persian Gulf Star Refinery converts light crude, known as condensate, into gasoline and naphtha.
The first phase was inaugurated by Rouhani in March 2017. The mega project is aimed to go full swing by the end of the current fiscal that ends in March 2019.
Since inauguration, along with Euro-5 quality gasoline production, PGSR also accounts for 11 ml/d of the country’s total 32 ml/d of Euro-4 gasoline production capacity.
Ongoing Projects
According to Zanganeh, several other refineries are upon completion, the implementation of which will help the government fulfill its plan to cut imports.
"Tabriz Refinery will go on stream before the summer ends and Bandar Abbas Refinery will expand capacity by October," he said.
He added that Lavan Oil Refinery's new gasoline production unit in southern Iran is expected to go on stream by the end of the current fiscal and Isfahan Oil Refinery's expansion plan will take place next year.
Iran has for years struggled to meet its domestic fuel needs due to a lack of refining capacity and international sanctions that limited the supply of spare parts for plant maintenance.
Real Remedy
Zanganeh said although the refining industry is nearing self-sufficiency, the goal may not be achieved unless consumption behaviors are improved and domestic car producers enhance the quality of their products.
“If we can reduce and manage our domestic gasoline consumption, we can even export gasoline,” he said.
Noting that the country's gasoline output has risen 13-fold in the past six years, he said Iranians' consumption has also outpaced the country's demand for imported gasoline to meet demand.
"In the previous fiscal, Iranians burned almost 80 million liters of gasoline daily. The government had to import 12 ml/d to meet demand," he said.
This is while according to the official, the daily gasoline consumption in 2012 stood at 63 million liters.
"The number shows an annual growth of 8-9% in gasoline consumption."
The veteran oil minister noted that a big part of the problem is rooted in vehicles' quality that should be tackled by automakers.
"We cannot establish a new refinery phase every year just to meet domestic demand," he said.
Zanganeh has repeatedly blamed the increasing numbers of vehicles, which barely meet international quality standards, for the high gasoline consumption rate.
"Don't blame refineries for gasoline issue. The problem is auto manufacturing," he said. "Every year, automotive industry adds 10% to its car production that causes gasoline consumption growth."
